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Canadian Pension Fund The Ontario Municipal Employees Retirement System (OMERS) announced Friday a $ 121 million investment for a 22.4% interest in IndInfravit Trust, an Infrastructure Investment Trust (InvIT), which is its first infrastructure contract in India.
IndInfravit holds a portfolio of five operating toll road concessions initially built and operated by L & T Infrastructure Development Projects Ltd. (L & T IDPL), a subsidiary of Larsen and Toubro Ltd., a leading construction builder. and transport of electricity.
"IndInfravit is a well-managed, world-clbad core infrastructure badet. This investment is an attractive entry point into India, one of the most dynamic markets in the world, alongside trusted partners, "said Bruce Crane, General Manager, who leads OMERS Infrastructure's Asia operations.
The Canada Pension Plan Investment Board (CPPIB) and Allianz Capital Partners (ACP) are the other key investors in IndInfravit.
On May 9, 2018, the British Royal Mint announced that the investment unit in the Canadian and ACP pension plan had made commitments to its unit.
While the Canada Pension Plan Investment Board invested $ 200 million for 30% of IndInfravit shares, ACP acquired 25% of the units, for a total of $ 166 million. dollars.
L & T IDPL held 15% of the shares. The remaining shares were subscribed by several local and international institutional investors.
"Our investment in IndInfravit is part of our strategy to diversify our portfolio and generate value for OMERS plan members." At the same time, we will participate in the expansion of the Indian economy by investing in critical infrastructure, "said Ralph Berg, executive vice president and global director of OMERS Infrastructure.
Infrastructure Investment Funds, or InvIT, allow infrastructure companies to raise funds from investors through operational and revenue-generating badets under one roof. This allows companies to meet their debt obligations given the long gestation period of infrastructure projects.
It functions as a mutual fund, where investors pool money in InvIT, a portion of which is then distributed to investors in the form of a dividend.
International infrastructure projects that OMERS has invested in include London City Airport, Bruce Power Nuclear Generating Station – Canada's private nuclear generator – in Ontario, and Melbourne Harbor in Australia.
The fund manages over $ 71 billion in net badets and its portfolio includes large scale infrastructure badets in sectors such as energy, transportation and government regulated services.
Its employees work in Toronto and other major cities in North America, the United Kingdom, Europe, Asia and Australia.
Canadian investors such as OMERS, the Office and Brookfield have been leading investors in India in recent years.
Canadian funds have made a plethora of investments in real estate and private equity, both directly and as fund sponsors, across the country.
Brookfield's largest residential transactions in India include structured structured debt investment of 450 crores in the Peninsula Land Ltd premium project in Mumbai, Byculla.
He also invested 800 crores of rupees in Total Environment Building Systems Pvt. Ltd. in Bengaluru, as well as $ 100 million in INCOR real estate company in Hyderabad.
The Canada Pension Plan Investment Board has invested, among others, in Byju's start-up businesses and Phoenix Market City in Bengaluru.
This story was first published on livemint.com
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